32 V.S.A. § 7817 — Determination of tax on failure to file return

(a) When the Commissioner discovers, by examination of the records of the taxpayer as
provided in section 7816 of this title or otherwise, that a person required to file a return under this subchapter has filed
an incorrect or insufficient return, the Commissioner may, at any time within three
years after the date the return was due, determine the correct amount of tax and shall
give notice to the taxpayer of the amount of any deficiency in such tax, together
with penalty and interest as hereinafter provided. If no return has been filed as
provided by law, the tax may be assessed at any time. When, before the expiration
of the period prescribed herein for assessment of an additional tax, a taxpayer has
consented in writing that the period be extended, the amount of the additional tax
due may be determined at any time within the extended period. The period so extended
may be further extended by subsequent consents in writing made before the expiration
of the extended period.
(b) A determination by the Commissioner in accordance with subsection (a) of this section
shall fix the tax, unless the person against whom it is assessed shall, within 60
days after receiving the notice of such determination, apply to the Commissioner for
a hearing as is herein provided. The decision of the Commissioner after the hearing
may be reviewed as provided in this chapter. (